This type of insurance helps your small business pay for certain expenses after a data breach. Covered expenses may include things like identity theft monitoring for affected individuals or your business's legal fees. Data breach liability insurance is sometimes called data compromise coverage.

Whether your small business is a medical office or a neighborhood barber shop, having the right liability coverage in place can help protect it against costly lawsuits. Each type of business liability insurance is subject to coverage limits, which is the maximum amount your insurer will pay for a covered claim. That's why it's important to talk with your insurance provider about choosing the right coverages and coverage limits to fit your small business's needs.